Tax-cut plan clears Senate easily

The Senate voted overwhelmingly Wednesday to advance President Barack Obama's tax package to the House, where the $858 billion bill is expected to receive a final vote Thursday.

The Senate vote was 81-19, with 13 Democrats, five Republicans and independent Sen. Bernie Sanders of Vermont voting no.

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The strong support elevates the pressure on the House to approve the package without making any changes that would endanger the compromise that Obama struck with Republicans. Many liberal House members, as well as a dozen or more conservative Republicans, oppose the measure, but not enough to derail the bill. Ahead of the vote, Obama made another pitch for the package in remarks Wednesday, mentioning yet again that the deal is not perfect, but that it is necessary to boost the economy. He said middle-class Americans “will no longer need to worry about a New Year’s Day tax hike.”

“I know there are different aspects of this plan to which members of Congress on both sides of the aisle object,” Obama said. “That’s the nature of compromise. But we worked hard to negotiate an agreement that’s a win for middle-class families and a win for our economy, and we can’t afford to let it fall victim to either delay or defeat. So I urge members of Congress to pass these tax cuts as swiftly as possible.”

As the first test in a new era of divided government, the Obama administration crafted a compromise that drew the most intense opposition from within the Democratic Party.

The deal extends the Bush-era tax rates for all Americans for two years, a move that most Democrats in Congress had campaigned against, and restores the estate tax at levels advocated by Republicans. In return, Obama secured the renewal of jobless benefits for one year, the creation of a payroll tax holiday, and the extension of dozens of tax breaks, including ones for businesses, college tuition, mass transit, renewable energy development and child care.

Three Democrats — Tom Harkin of Iowa, Byron Dorgan of North Dakota and Tom Udall of New Mexico —switched their “yes” votes Monday to “no” votes. Sen. Sherrod Brown (D-Ohio) also flipped his vote, from "no" to "yes," saying he changed his mind after talking with his minister and reading letters from constituents struggling in the economic downturn.

Two senators who were not present for the Monday vote — Jeff Merkley and Ron Wyden of Oregon — opposed the bill. Wyden said the bill piled up too much debt and that Congress needed first to fix the country’s tax code.

Before the final vote, the Senate rejected three attempts to amend the package, none of which received the two-thirds majority to suspend the rules and consider the amendments.

One by Sen. Jim DeMint (R-S.C.) would have permanently extended tax cuts, one by Sen. Tom Coburn (R-Okla.) would have offset the cost of unemployment insurance benefits, and one by Sanders would have allowed tax rates for high-end earnings to rise.

The bill now heads to the House, where the prospects for the bill look brighter than they did a week ago, when the House Democratic caucus cast a nonbinding vote opposing the deal. The bill could be considered as early as Wednesday night, according to the spokesman for Rules Committee Chairwoman Louise Slaughter (D-N.Y.).